Professional Documents
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395–410, 2007
Ó 2007 Elsevier Ltd. All rights reserved.
0263-2373 $32.00
doi:10.1016/j.emj.2007.08.005
Nowadays the experience factor plays an increas- Keywords: Experimential marketing, Customer
ingly important role in determining the success of experience, Customer behaviour
a company’s offering. The literature on Customer
Experience is growing fast and the debate among
scholars and practitioners is fervent. While many Introduction
studies explore such theme from a theoretical view-
point, tools aimed at supporting marketing manag- Nowadays competing in a global market has become
ers in devising the right stimuli to support an increasingly difficult and only the creation of long-
excellent Customer Experience are still scarce. In lasting competitive advantages seems to offer an ave-
this perspective, this study sheds some light on nue for survival. But where should a company start
the concept of Customer Experience, and on how looking to develop a competitive advantage? Many
the right environment and setting for the desired scholars advocate that one of the main routes to
Customer Experience should be created in such a reach it is by means of a much stronger focus on
way as to contribute to the value creation for cus- the customer (Douglas and Craig, 2000; Farinet and
tomers and the company itself. Drawing from the Ploncher, 2002; Kotler and Keller, 2006; Peppers
results of a survey submitted to several groups of and Rogers, 2000).
customers, this paper attempts to understand the
specific role of different experiential features in In the last years, and particularly in the process of
the success achieved by some well-known prod- devising a company’s strategy, this growing attention
ucts. Following the empirical investigation, this on the customer resulted in an increased focus on
work also suggests an interpretative model to sup- CRM philosophies. More recently, as the number of
port the marketing manager in generating the contact points between a company and its customers
proper stimuli to activate the various components increased, such attention to the customer revealed the
of the Customer Experience. fundamental importance of monitoring the many
Ó 2007 Elsevier Ltd. All rights reserved. experiences that originate from those contact points.
European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 395
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
In this perspective, the central idea is to expand the facts that are conducive of a (Customer)
transaction-based notion of Customer Relationship Experience, and which can then be used by con-
to the ‘‘continuous’’ concept of Customer Experience. sumers to co-produce their own experience.
Consequently, it becomes necessary to consider
aspects that refer to the emotional and irrational side
of customer behavior (Holbrook and Hirschman,
State-of-the-art Literature on Experiential
1982) and which, more than the only rational ones,
account for the whole experience coming from the Marketing
set of interactions between a company and its cus-
tomers. Such experience plays a fundamental role The concept of Customer Experience was firstly con-
in determining the customers’ preferences, which ceived in the mid-1980s when, along with the main-
then influence their purchase decisions. In fact, stream literature in consumer behavior that deemed
whilst the classical economic theory regards the con- customers as rational decision makers, a new experi-
sumer as a logical thinker whose purchasing deci- ential approach offered an original view to consumer
sions are based on rational problem solving, the behavior (Holbrook and Hirschman, 1982). The
recent developments on the literature on economics importance of various hitherto neglected variables
and marketing, and particularly the new stream of was re-considered: ‘‘the role of emotions in behavior;
the Experiential Marketing, advocates for the exploi- the fact that consumers are feelers as well as thinkers
tation of intangible elements linked to the emotional and doers;. . .the roles of consumers, beyond the act
value perceived by customers. of purchase, in product usage as well as brand
choice’’ (Addis and Holbrook, 2001). Despite these
In addition, a similar position can be found in the initial sparks, the concept of Customer Experience
managerial field; in fact, 85% of senior business man- came more relevantly to the fore in the 1990s with
agers believe that differentiating solely on the tradi- Pine and Gilmore’s book on the Experience Economy
tional elements, such as price, product and quality, (1999); the authors present the ‘‘experiences’’ as a new
is no longer a sustainable competitive advantage economic offering, which emerges as the next step
and even more senior managers hold the Customer after commodities, goods and services in what they
Experience as the next competitive battleground call the progression of economic value. Hence, in the fol-
(Shaw and Ivens, 2005). lowing years a flourishing of different contributions
focused their attention on the Customer Experience
Despite such vibrant enthusiasm, however, the real- as a new lever to create value for both the company
ity is very different, and far from being close to either and the customer (Addis and Holbrook, 2001;
what the literature advocates or what many compa- Carù and Cova, 2003; Ferraresi and Schmitt, 2006;
nies claim in their statement of intent. Forlizzi and Ford, 2000; LaSalle and Britton, 2003;
Milligan and Smith, 2002; Ponsonby-Mccabe and
In addition, the scientific literature on this topic Boyle, 2006; Prahalad and Ramaswamy, 2004; Sch-
shows the limitations and inadequacies that are typ- mitt, 1999; Schmitt, 2003; Shaw and Ivens, 2005;
ical of those research fields which are still far from Smith and Wheeler, 2002). The starting point of these
their maturity, particularly as it lacks both in terms approaches is a renewed way to consider the well-
of a precise terminology and of structured and stan- known concept of consumption: it becomes a holistic
dardized approaches that can support the adoption experience which involves a person – as opposed to a
of the above mentioned practices. customer - as a whole at different levels and in every
interaction between such person and a company, or a
Given these considerations, the aim of this paper is to company’s offer (LaSalle and Britton, 2003). In this
contribute towards the formalization and the perspective, the memorability of the ‘‘staged’’ events,
improvement of the existing models and approaches as in Pine and Gilmore’s works, is no longer of pri-
on the matter. In particular, the present study con- mary importance: what contributes to the creation
tributes to the scientific debate in terms of a further of value is not so much selling memorable experi-
rationalization of the approaches and theories so far ences but to enable the customer to live all the
developed and in attempting to provide an answer moments of the relationship with a company in an
to certain open issues. Specifically, in this work it is excellent way, even beyond her expectations (LaSalle
provided: and Britton, 2003) or, according to the viewpoint of
Prahalad and Ramaswamy (2004), to co-create their
v a conceptual definition of ‘‘Customer Experi- own unique experience with the company. In this
ence’’ based on the most relevant scholarly and perspective, companies do not sell (or stage, accord-
managerial contributions; ing to Pine and Gilmore’s perspective) experiences,
v an analysis of the specific role played by the but rather they provide artifacts and contexts that
experiential features in a sample of innovative are conducive of experiences and which can be prop-
products with respect to the outcomes of their erly employed by consumers to co-create their own,
introduction to the market; unique, experiences (Carù and Cova, 2003; Carù
v an interpretative model aimed to support a com- and Cova, 2007). Indeed, Schmitt (1999) states that
pany in the process of devising contexts and arti- ‘‘as a marketer you need to provide the right
396 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
environment and setting for the desired customer from the debate in literature, a definition of Cus-
experiences to emerge’’. More recently, a comprehen- tomer Experience which underlies the subsequent
sive contribution has been offered in the book ‘‘Con- analysis; the second part delves into the concept of
suming Experience’’ (Carù and Cova, 2007), in which Customer Experience and introduces its elementary
the authors identify a ‘‘continuum of consuming dimensions: the experiential components.
experiences’’ ranging from experiences that are
mainly constructed by the consumers, to experiences In the third part we describe a general framework
that are largely developed by companies (a kind of whereby the inter-relations between the concepts of
approach which is close to Pine and Gilmore’s view- Customer Experience and value exchanged are out-
point), passing through experiences that are co-cre- lined, as well as the relationships between such con-
ated by consumers and companies (as per Prahalad cepts, the customer and the company.
and Ramaswamy). Accordingly, the role of the firm
changes in each stage of the continuum: from a com-
pany pursuing almost a traditional product or ser- A Definition of Customer Experience
vice marketing approach to a company adopting a
holistic and immersive experiential marketing For our purpose, we consider a definition of Cus-
approach (thus providing immersive experiences, tomer Experience which takes into account the most
whereby a consumer dives into an experience that relevant scientific contributions; specifically, we
is fully developed in details by a company), passing define the concept of Customer Experience as an evo-
through a co-creation stage, in which a company pro- lution of the concept of relationship between the
vide the consumer with the basic platform and raw company and the customer.
materials that are then being used by the consumer
to mold and obtain his/her own experience. ‘‘The Customer Experience originates from a set of interactions
between a customer and a product, a company, or part of its orga-
nization, which provoke a reaction (LaSalle and Britton, 2003;
As the scientific contributions are rich and diverse, so Shaw and Ivens, 2005). This experience is strictly personal
are the different interpretations and conceptualiza- and implies the customer’s involvement at different levels
tions of the Customer Experience offered by each (rational, emotional, sensorial physical and spiritual) (LaSalle
author; nevertheless, despite the differences of per- and Britton, 2003; Schmitt, 1999). Its evaluation depends on
spective and the various models proposed, one can the comparison between a customer’s expectations and the
identify some common core characteristics of the stimuli coming from the interaction with the company and its
offering in correspondence of the different moments of contact
Customer Experience. First, it has a temporal dimen- or touch-points (LaSalle and Britton, 2003; Shaw and Ivens,
sion which originates from the entire set of contact 2005).’’
points (or moments of truth, Carlzon, 1987) between
the customer and the company, or the company’s This definition serves as a basis for a deeper con-
offer (Addis and Holbrook, 2001; Carù and Cova, ceptualization of Customer Experience, which is
2003; LaSalle and Britton, 2003), then it is strictly per- explained in the following paragraph.
sonal and it involves and engages a customer at dif-
ferent levels (rational, emotional, sensorial, physical
and also ‘‘spiritual’’) so as to create a holistic Gestalt The Multidimensionality of the Customer
(Brakus, 2001; Schmitt, 1999). Experience
While the overall picture offers plenty of potentiality, While still complying with the fundamental rule that a
if we exclude some pioneers, only few companies good experience must holistically and consistently
have adopted the perspective of the Customer Expe- involve a person at different levels, and following pre-
rience, whereas the many are still far from the level vious conceptualization, we base our analysis on the
of success that can potentially be obtained by lever- psychological concept of modularity of mind (Pinker,
aging on the Customer Experience. 1997). Various psychological and behavioral studies
(Anderson, 1995; Brakus, 2001; Fiske and Taylor,
Two facts can then be regarded as main reasons for 1991; Goleman, 1995; Schmitt and Simonson, 1997;
such slow adoption rate: one is the lack in the extant Tavassoli, 1998) distinguish three basic systems –
literature of models, interpretation and conceptuali- sensation, cognition and affect – each with its own struc-
zation offering a common terminology and a shared tures, principles and mutual interactions. In addition,
mindset, the other is the lack of structured manage- when considering a person per se, these studies take
rial approaches, which can only be overcome by a into account the set of one’s actions, the system of
deeper comprehension of the role played by the Cus- values and beliefs (from which lifestyles and behaviors
tomer Experience. are derived) and relationships.
European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 397
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
and emotional components (i.e. Fulbright et al., 2001); conscious mental processes; an offering may
this is consistently supported by findings from engage customers in using their creativity or
human brain imaging studies showing that multiple in situations of problem solving; furthermore a
cortical regions are activated during the presentation company can lead consumer to revise the usual
of painful stimuli (Coghill et al., 1994; Derbyshire and idea of a product or some common mental
Jones, 1998; Jones et al., 1991; Paulson et al., 1998; Tal- assumptions (as happened with the Barbie, the
bot et al., 1991). first doll with the image of a young woman).
v Pragmatic Component: a component of the Cus-
Therefore, drawing from this literature, and follow- tomer Experience coming from the practical act
ing the stream of other scientific works (Brakus, of doing something; in this sense the pragmatic
2001; Fornerino et al., 2006; Schmitt, 1999, 2003), we component includes, but is not exhausted by,
conceptualize the Customer Experience as a multidi- the concept of usability (the Apple iMac offers
mensional structure composed by elementary com- an optimal example of what it means to design
ponents. Nevertheless, one must keep in mind that, an extraordinary practical experience for users
as indeed the study proved, customers hardly ever based on usability standards). In fact it does not
recognize such kind of structure. In contrast, we only refer to the use of the product in the post-
expect that customers perceive each experience as a purchase stage, but it extends to all the product
complex but unitary feeling, each component being life-cycle stages (see for an example KitchenAid
hardly distinguishable from the others. and Whirpool’s initiative called Insperience).
v Lifestyle Component: a component of the Cus-
As above mentioned, our conceptualization of the tomer Experience that comes from the affirma-
elementary components of the Customer Experience tion of the system of values and the beliefs of
has some elements in common with the model pro- the person often through the adoption of a life-
posed by Schmitt (1999) and with the results of style and behaviors. Frequently an offering may
Fornerino et al. (2006). Moving from the basic idea provide such experience because the product
of ‘‘engagement at different levels’’ Schmitt (1999) itself and its consumption/use become means
proposes a modular conceptualization of the concept of adhesion to certain values the company and
of Customer Experience. Specifically, Schmitt identi- the brand embody and the customers share (as
fies five Strategic Experiential Modules: sensory experi- in the consumption of no logo products).
ences (sense); affective experiences (feel); creative v Relational Component: a component of the Cus-
cognitive experiences (think); physical experiences, tomer Experience that involves the person and,
behaviors and lifestyle (act); and social-identity expe- beyond, his/her social context, his/her relation-
riences that result from relating to a reference group ship with other people or also with his/her ideal
or culture (relate). Fornerino et al. (2006) analyze the self. An offering can leverage on such component
case of an immersive consumption experience and by means of a product which encourages the
identify five distinct dimensions: sensorial-percep- use/consumption together with other people
tual, affective and physical-behavioral (components) (i.e. Disneyland parks) or which is the core of a
and social and cognitive (facets). common passion that may eventually lead to
the creation of a community or still a tribe of fans
Hence, drawing from the extant literature, the (expe- (i.e. Ducati); finally the product (as haute couture
riential) components we have assumed as dimen- apparel) can be also a means of affirmation of a
sions of the Customer Experience are: social identity, inducing a sense of belonging or
of distinction from a social group; in this case
v Sensorial Component: a component of the Cus- the link with the lifestyle component is very
tomer Experience whose stimulation affects the relevant.
senses; an offering, whose aim is to provide good
sensorial experiences, can address sight, hearing,
touch, taste and smell so as to arouse aesthetical While mainly drawing from the results of the above
pleasure, excitement, satisfaction, sense of beauty mentioned works, the dimensions of the Customer
(good examples are Jamba Juice bars or Lush Experience we propose bear some differences. First,
stores). taking into consideration Schmitt’s act module, we
v Emotional Component: a component of the Cus- distinguish the physical aspects from the values
tomer Experience which involves one’s affective and join the physical part with the sensorial dimen-
system through the generation of moods, feel- sion. Such approach is also consistent with recent
ings, emotions; an offering can generate emo- neurophysiologic studies, whereby the physical and
tional experience in order to create an affective sensitive aspects are considered as a unitary dimen-
relation with the company, its brand or products sion. Secondly, we add a new dimension, namely
(good examples of brands which claim a strong the pragmatic component, which we drew from the
emotional link with their customers are Barilla extant literature on the user experience (Arhippai-
and Kinder Surprise). nem, 2004; Battarbee and Koskinen, 2005; Forlizzi
v Cognitive Component: a component of the Cus- and Ford, 2000) and which takes into account the
tomer Experience connected with thinking or aspects related to the human-objects interaction.
398 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 399
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
Experience
Sensorial
Value proposition Emotional Value perception
Cognitive
Company Pragmatic Consumer
Value realization Lifestyle Value expectation
Relational
Company value (Ferraresi and Schmitt, 2006) Consumer Value (Holbrook 1999; Addis and
Holbrook 2001)
_ Sales, Market share...
_ Brand equity _Utilitarian value
_ Customer equity _Edonistic value
400 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
v the comprehension of the relative weights of the nent is associated to certain group of customers,
experiential features over the functional ones in which represent only a fraction of the entire market
the perception of value (for each of the twelve (i.e. the relational component tied with collecting
product analyzed); practices). Consequently, the average score reported
v the definition of the contribution of each experi- by such component is substantially lowered by the
ential component to the overall evaluation of large part of the sample which is definitely not inter-
the offer. ested in this kind of component of the Customer
Experience. As expected, a cluster analysis confirmed
this line of reasoning isolating two clusters of cus-
tomers, one remarkably affected by the relational
Utilitarian vs. Hedonic Value component, the other substantially indifferent.
European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 401
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
being perceived separately by customers or not. Such IPOD 3.63 Hearing Yes
investigation is important both from a theoretical NIKE 3.21 Sight No
perspective and from a managerial perspective. The-
oretically, as we hypothesized the existence of com- H.C. BRAND BARS 3.62 Sight No
402 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
mean (marked in grey in Figure 7), and the other set GATORADE 3.12 2.67 2.90
with scores lower than the mean (marked in white in
1.86 2.44
Figure 7) and thus ascertain that actually the first MCDONALD’S 3.01
European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 403
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
404 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
observation suggests that when devising a value v which sensorial component should characterize a
proposition focused on the Customer Experience, new offer (in the light of its core functionalities);
companies should carefully regard at potential inter- v which components of the Customer Experience
actions between the components of the Customer are consistent with the levels of Customer
Experience on which their products leverage so as Involvement and Customer Commitment of the
to fully exploit the effects above described. offer;
v which sort of relational component is to be acti-
vated when dealing with different levels of cus-
Managerial Implications tomer involvement and customer commitment
of a specific offer.
Due to the lack of a rigorous phase of validation of the
suggested model, we need to precise that the results
do not allow a straight generalization. However, that Next Developments
notwithstanding, we can still draw some implications
and suggestions aimed at supporting a manager in The main drawbacks of this study are connected to
devising a value proposition, especially when the the fact that complex experiences (that is, experiences
value delivered to the customer should ideally be dri- originating from the interaction of two or more com-
ven both by experiential features (hedonic/experien- ponents) were isolated in the factor analysis but not
tial value) and by functional characteristics accounted under the interpretative model.
(utilitarian/functional value), thus possibly increas-
ing the odds of a good market response. Such interactions could be further explored by means
of a multi-way ANOVA so as to isolate both the main
We sum up these indications into four guidelines: effects of the ‘‘pure’’ components and account for the
interaction effects which originate the complex
1. Develop Experience-driven innovations; more than experiences.
Technology push or Market driven innovations,
the ones leveraging on experience have better Moreover, while our study was not intended to
chances to get a positive market response as they develop a general scale for measuring each experien-
seem more likely and more capable of meeting tial component, we recognize that such is an impor-
new customers’ needs; tant area which deserves a specific investigation.
2. Consider the functional features of the commercial offer
in order to create a sustainable competitive advan- Another avenue for a further path of research would
tage with respect to competitors. Because the util- entail the exploration of whether certain types of
itarian value is still one of the main drivers of experiences (such as very common experiences or
customers’ evaluation and perception of a new experiences which are particularly familiar to a cus-
product, it ought to be paid full attention, particu- tomer) can still be accounted as a legitimate Cus-
larly when those functionalities act as enabling tomer Experience. In this respect it would be
factors for great experiences. interesting to account for a sort of updating mecha-
3. Provide a venue for an integrated Customer Experience nism whereby the expectations of a customer are sys-
according to the position in the ‘‘Consuming tematically updated as he or she lives a specific
Experience’’ continuum where the Customer experience.
Experience is being provided. Specifically, when
experiences are mainly created by consumers, A further advancement of the research would take
the experiential features of the product or service into considerations the sets of experiences that can
being offered should be systematically addressed be originated across each specific stage of the pur-
(as it is for Pringles and Gatorade cases). In the chasing process (e.g. in-store experience), thus
case of experiences that are co-developed by com- exploiting a much wider scope of experience than
panies and consumers, companies should enable the one which can be offered by mere products.
the molding and forging of a consumer’s own
experience by providing the experiential basic Eventually, a further validation of the model is
materials (as it is for Harley-Davidson case). needed, for instance by means of multiple case stud-
Finally, for experiences that are mainly created ies so as to achieve an analytical generalizability.
by companies, the whole set of products, services
and context should be addressed in a systematic
and consistent way (as it is for McDonald’s and Acknowledgement
Haute-Couture Brand Bars cases).
4. Keep in mind that the different components of the Cus- The authors would like to thank the anonymous ref-
tomer Experience depend on the characteristics of a erees and the editor of this paper (Prof. H. Laroche)
given product. for the insightful comments and suggestions. The
authors also gratefully acknowledge the support of
Specifically, at an operational level, the proposed Fabrizio Rossi and Pablo Daini for their collaboration
interpretative model can be used to identify: in survey data collection and preliminary analysis.
European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 405
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
406 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
Appendix 2 (continued)
European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 407
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
Pure Components
Answers Coefficient Experience
typology
FACTOR 1: SENSORIAL COMPONENT
Sound clearness 0.848 Sensorial
Sound quality 0.859 Sensorial
FACTOR 2: PRAGMATIC COMPONENT
The interface is user friendly 0.807 Pragmatic
It is easy and comfortable to use 0.759 Pragmatic
FACTOR 3: RELATIONAL COMPONENT
Opportunity of being a member of a community 0.880 Relational
Complex experiences
FACTOR 4:SENSORIAL/LIFESTYLE COMPONENTS
Design 0.848 Sensorial
Elegant and essential style 0.773 Sensorial
Material and colour 0.717 Sensorial
Esthetical aspects (shape, colour, design. . .) 0.728 Sensorial
Specificity and distinctiveness with respect to other MP3 players 0.543 Lifestyle
iPod image (young, innovative. . .) 0.590 Lifestyle
FACTOR 5: PRAGMATIC/COGNITIVE/LIFESTYLE COMPONENTS
Simple and fast file transfer from P.C. 0.432 Pragmatic
Extra functions (diary, games, calendar. . .) 0.660 Cognitive
Existence of a dedicated line of accessories (loudspeakers, 0.707 Cognitive
cases, car accessories,. . .)
Prestige and fame of Apple brand 0.462 Lifestyle
FACTOR 6: PRAGMATIC/RELATIONAL/EMOTIONAL COMPONENTS
It is easy-to-carry and to use even in motion (dancing, running, working out. . .) 0.468 Pragmatic
Opportunity of sharing musical files with other iPod owners 0.557 Relational
Usage for fun/entertainment 0.776 Emotional
408 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE
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